Stock Market on Jan. 24, 2025: S&P 500 ends below record high as tech slumps, but posts big weekly gain along with Nasdaq and Dow after Trump's return to White House - MarketWatch

# **Stock Market Update: Jan. 24, 2025 – S&P 500 Ends Below Record High as Tech Slumps, But Posts Big Weekly Gains**

On January 24, 2025, the **S&P 500 closed slightly below its all-time high**, dragged down by a slump in tech stocks. However, the broader market—including the **Nasdaq and Dow Jones Industrial Average**—posted strong weekly gains following **Donald Trump’s return to the White House**.

Let’s break down what happened, why it matters, and what people are saying.

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## **Historical Background: How We Got Here**

- **The Trump Effect (2016-2020):** During Trump’s first term, markets surged due to corporate tax cuts, deregulation, and strong economic growth. However, trade wars and political volatility also caused turbulence.

- **Biden Years (2020-2024):** Under Biden, markets saw mixed performance—big tech and green energy stocks soared, but inflation and interest rate hikes weighed on growth.

- **2024 Election Impact:** Trump’s victory in November 2024 reignited investor optimism about tax cuts, deregulation, and business-friendly policies, leading to a **pre-inauguration rally**.

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## **What Happened on Jan. 24, 2025?**

- **Tech Slump:** Big tech stocks (Apple, Microsoft, Nvidia) dipped due to profit-taking and concerns over potential antitrust actions.

- **Weekly Gains:** Despite the dip, all three major indexes (S&P 500, Nasdaq, Dow) posted strong weekly gains—up **3-5%**—fueled by:

- Hopes of **lower corporate taxes** under Trump.

- Expectations of **less strict regulations** on banks and energy companies.

- A rebound in **industrials and financial stocks**, which benefit from economic growth.

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## **Public Opinion: What Are People Saying?**

### **Optimistic Views (Bullish Investors)**

- **"Markets love stability and pro-business policies—Trump’s return is good for stocks."**

- **"The weekly gains show confidence in the economy, even if tech took a hit."**

- **"Lower taxes mean bigger profits for companies, which helps stock prices."**

### **Pessimistic Views (Bearish Critics)**

- **"Tech is the future—if big tech struggles, the market could face long-term risks."**

- **"Trump’s trade wars could return, hurting global markets."**

- **"The rally might be short-lived if inflation or interest rates spike again."**

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## **Counterarguments: Is the Rally Sustainable?**

✅ **Yes, Because:**

- Corporate earnings remain strong.

- Investors expect economic growth under Trump’s policies.

- The Fed may cut interest rates if inflation cools.

❌ **No, Because:**

- Tech stocks (a huge part of the market) are still shaky.

- Geopolitical risks (China tensions, Middle East conflicts) could disrupt markets.

- If Trump’s policies lead to higher deficits, long-term risks could emerge.

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## **Implications: What Does This Mean for the Future?**

### **Short-Term (Next Few Months)**

- More volatility, especially in tech.

- Possible gains in energy, banking, and industrials.

### **Long-Term (Next Few Years)**

- **If Trump’s policies boost growth:** Stocks could keep rising, but debt and inflation risks loom.

- **If trade wars or regulation fights return:** Market confidence could drop.

### **Lessons Learned**

- **Markets react quickly to political changes.**

- **Diversification matters—tech isn’t the only driver of returns.**

- **Investors should watch policy changes closely (taxes, trade, regulations).**

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## **Final Thoughts**

While the S&P 500 missed a new record on Jan. 24, the overall market trend remains positive—for now. Investors are betting on a business-friendly White House, but risks remain.

**Key Takeaway:** Stay informed, don’t panic over daily swings, and keep an eye on policy changes that could shape the market in 2025 and beyond.

Would you like a deeper dive into any specific part of this analysis? Let me know! 🚀